Bitcoin Mining Banned in Iran

As officials think, the major cause of the blackouts in many Iranian cities is operations needing considerable energy for Bitcoin mining. It stated that bitcoin and other cryptocurrencies will be banned. The ban is immediately in place and will remain on state television until 22 September.

In recent months many daily outages have been seen in the capital Tehran and other major cities. The officials blame the country for a scarcity of natural gas, a lengthy drought that has blocked hydropower plants in the country, and the rising mining of bitcoin. A bulk of bitcoin's mining use comes from unlicensed miners, government authorities said, who work without licenses.

These conditions have led to a countrywide halt to unlicensed bitcoin miners and to temporary cutbacks in electricity for authorized bitcoin farms because of the rise in power demand, due to the epidemic caused by stay-at-home edict. Summer has begun and temperatures have gone up, so high is the electricity usage that several medical facilities failed to operate their Covid-19 cold storage facilities.

In January 50,000 Bitcoin machines were confiscated from illicit electricity by the Iranian authorities. The miners had consumed 95 megawatts per hour at state-financed rates, according to Iran's power utility. The country is permitted only to use 50 mining farms utilizing a total of 209 MegaWatts of energy, yet 85 percent of Bitcoin mining is without a license.

A Bitcoin transaction involves complicated mathematical equations performed by the designed computers and the digital currency miner is compensated for his effort. Due to the quantity of electricity utilized by computers, the entire system is tremendously energized.

In January-April 4.5 percent of the Bitcoin mining in Iran occurred, making Iran among the top ten on Earth, while China ranked first in about 70 percent, according to Blockchain analysis company Elliptic.

Bitcoin soared on Monday, over US$40,000 after Musk secured "possibly fruitful negotiations" with North American bitcoin miners to improve its eco-sustainability.